Why Do Art Appraisals Matter For Wealth Managers?Feb 28, 2021
Did you know that 71% of passion assets are forgotten in wealth management?
It’s true. According to a 2017 Deloitte Art and Finance report, a staggering 71% of passion assets, like art collections, are not included in wealth management. That means that a good portion of your client’s assets may not be accounted for in their wealth management portfolio – leaving your clients vulnerable to future devaluation, insurance issues, poor estate planning and overall diminished growth.
For years, passion assets such as art have been left lying on the sidelines. The problem, in part, started because most individuals don’t consider art purchases for wealth accumulation, rather for enjoyment. In addition, with biased gallery valuations and unskilled appraisals, the notion of including art into the scope of wealth management seemed fruitless.
But, today more than ever, including fine art into a client’s wealth management portfolios can help reduce stress and preserve assets for generations to come.
What happens when art collections are unmanaged?
- Value is lost when the collection gets sold on the market
- Legitimate tax mitigation strategies get overlooked
- Art is not monetized for wealth building through trust or community foundations
- It may not be protected by insurance because of biased valuations
- Poor estate planning and potential for family battles
As an art consultant and appraiser with over 20 years-experience as an art connoisseur, business owner, gallery director and art dealer, I am uniquely positioned to help your clients ascertain the value of their art collection for wealth management purposes.
In addition to fine art appraisal services, I help identify the proper questions to discuss with a client when making decisions regarding art and financial planning. With proper advice on how to maintain value and maximize tax benefits, I act as a bridge to help your clients avoid the issues that occur with an unmanaged collection.